Greater Manchester economy could grow by £1.9bn by 2023
Greater Manchester is one of the UK’s most vibrant and dynamic regions. Billions of pounds of investment combined with a growing population, world class education and business sectors, and a cultural offering second-to-none make it a go to place for people from around the world.
Now, the new UK Powerhouse report from Irwin Mitchell and the Centre for Economics and Businesses argues that even better times could be on the way for Manchester and its surrounding region.
The report examines the latest trends in foreign direct investment in the UK and analyses its effect on job creation and economic productivity using data from the Office for National Statistics and the Department for International Trade.
Specifically, it looks at where this foreign direct investment is moving to in the UK, and looks ahead to the end of 2023 to project how that will translate into economic gains in those locations. Overall, the report shows that the growth path for the UK is clear, and that certain areas like Greater Manchester are likely to see outsized benefits.
From its current size of more than £68bn, the report projects that Greater Manchester’s regional economy will grow to £71bn by the end of next year, packing a huge amount of growth into the space of 18 months. Fuelling that growth will be the creation of at least 28,000 jobs if the current foreign direct investment trends are accurate.
This will require the region to continue attracting not only the current rate of investment, but keep increasing it from new sources as part of its levelling up. This will be driven by the diversification of its industries, as well as the deepening of existing specialisations such as advanced manufacturing, medical research, the higher education sector, digital and media, tourism and much more.
The report highlights the financial services sector as a good example of Greater Manchester’s potential. It is already the largest sector of its kind in the UK outside of London, and with further investment it could become a key factor in promoting and building Manchester’s economy even further.
Likewise, Manchester has established itself as a major national technology, digital and communications hub. Having been recently named the UK’s best tech city outside of London, Manchester has a good basis to build on, and with further investment could expand on this strength.
Backing this up, we can look at the £1bn expansion of MediaCityUK which is underway at the moment. It is the home of the BBC, ITV and over 200 other digital firms, and is in the process of doubling in size to provide even better facilities and more office space for the next wave of digital businesses. We can also look at GCHQ opening new facilities in Manchester along with Amazon, Cloud Imperium and other technology giants for further examples of our city’s strength in this area.
Bryan Bletso, partner and head of international at Irwin Mitchell, said: “This latest UK Powerhouse report makes clear that Northern cities like Manchester have huge potential.
“The Greater Manchester International Strategy report highlights the importance of working with the Government on delivery of new investment strategy. The incentives needed to drive additional FDI can unlock the strength of a region like the North West and deliver not just on the levelling up agenda, but the wider aim for a truly global Britain post-Brexit.”
He added: “The UK Powerhouse report shows the North West is well placed to make the jump to higher performance in terms of FDI, having seen a smaller percentage change than other regions.
“The time to invest in Manchester’s success is now and by doing so, the corresponding economic growth and job creation will go a long way towards safeguarding future prosperity and making levelling up a reality.”
Manchester has for many years been a go to location for investors thanks to its 21st century transformation into a modern global city, but the UK Powerhouse report shows that even better times may be around the corner as foreign direct investment continues to pour in.
If you are looking to invest in Manchester property, this could be the ideal time to get ahead of the curve and make the most of the predicted growth. To learn more about buying apartments in Manchester city centre, get in touch with our team today by clicking here.